Plazacorp announces 18.7% increase in FFO with its quarter end results
May 10, 2012
FREDERICTON, May 10, 2012 /CNW/ - Plazacorp Retail Properties Ltd. (TSXV: PLZ) today announced its results for the quarter ended March 31, 2012.
For the quarter ended March 31, 2012, Plazacorp reported funds from operations ("FFO") of $3.8 million, an increase of 18.7% over the same period in the prior year. FFO per share was $0.064 for the three months ended March 31, 2012 ($0.064 per share diluted), consistent with the same period in the prior year. FFO was positively impacted by growth in net property operating income, savings in one-time administrative costs incurred in 2011 and a decrease in financing costs, partly offset by the net effects of the internalization of property and corporate management. FFO per share was impacted by an 18.9% increase in the weighted average shares outstanding.
Michael Zakuta, Plazacorp's President and CEO said, "We are very pleased with the financial results for the quarter. Plazacorp has strengthened its balance sheet as our ratio of debt to asset value has decreased to 44.6%. The strong growth in FFO is a confirmation of our business strategy that is based on creating value for our shareholders by developing high quality retail projects leased to national retailers and financing these projects with long term fixed rate financing for terms of ten years or more."
Profit for the quarter ended March 31, 2012 was $14.7 million compared to $6.9 million recorded for the same period in the prior year. Profit was mainly impacted by non-cash fair value adjustments on investment properties and convertible debentures, net of deferred taxes on those amounts, as well as the same factors described above affecting FFO.
|Plazacorp's summary of FFO is presented below:|
(000s - except per share amounts and debt coverage
|Profit for the period attributable to shareholders||$ 14,192||$ 6,382|
|Gain on disposal of land||(8)||-|
|Deferred income tax expense||4,444||2,511|
|Fair value adjustment to investment properties||(13,361)||(6,406)|
|Fair value adjustment to investments||(1,610)||(982)|
|Fair value adjustment to convertible debentures||(79)||1,446|
|Net revaluation of interest rate swaps||(110)||(62)|
|Non-controlling interest adjustment||340||320|
|Basic FFO||$ 3,808||$ 3,209|
|Interest on dilutive convertible debentures||-||-|
|Diluted FFO||$ 3,808||$ 3,209|
|Basic Weighted Average Shares Outstanding||59,942||50,428|
|Diluted Weighted Average Shares Outstanding||59,942||50,428|
|Basic FFO per share||$ 0.064||$ 0.064|
|Diluted FFO per share||$ 0.064||$ 0.064|
|Debt coverage ratios|
|Interest coverage ratio(1)||2.0 times||1.8 times|
|Debt service coverage ratio(2)||1.6 times||1.5 times|
Plazacorp Retail Properties Ltd. is an owner of shopping malls and strip plazas throughout Atlantic Canada, Quebec and Ontario. Plazacorp owns interests in 116 properties comprising 5.1 million square feet of retail real estate.
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This news release contains forward looking statements relating to our operations and the environment in which we operate, which are based on our expectations, estimates, forecasts and projections. These statements are not future guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward looking statements. Readers, therefore, should not place undue reliance on any such forward looking statements. Further, a forward looking statement speaks only as of the date on which such statement is made. We undertake no obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances, except for forward-looking information disclosed in prior disclosures which, in light of intervening events, requires further explanation to avoid being misleading.
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For further information:
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Floriana Cipollone, Chief Financial Officer (416) 848-4583 or Kim Sharpe, Director of Business Development at (506) 460-8261